See your projected retirement balance for both accounts with a live chart — and get a clear verdict on which one wins for your income and age.
| Feature | TFSA | RRSP |
|---|---|---|
| 2025 Annual Limit | $7,000 | $32,490 / 18% of income |
| Contribution Type | After-tax dollars | Pre-tax dollars (deductible) |
| Tax on Growth | None | Deferred |
| Withdrawals Taxed? | Never | Yes, as income |
| Withdrawal Room Restored? | Yes, next Jan 1 | No |
| Affects GIS/OAS Clawback? | No | Yes |
| Best For | Low-to-mid earners, flexibility | High earners, retirement focus |
This calculator projects your retirement balance under two scenarios — TFSA and RRSP — and tells you which account delivers more after-tax money at age 65.
Both accounts use the Future Value of a Growing Annuity formula:
FV = PV × (1 + r)ⁿ + PMT × [(1 + r)ⁿ − 1] / r
Where PV = current savings, PMT = annual contribution, r = annual return rate, n = years to retirement.
When you contribute to an RRSP, you get a tax refund equal to your contribution × your marginal rate. This calculator assumes you reinvest that refund — which is the optimal strategy. At retirement, the full RRSP balance is taxed at your estimated retirement marginal rate (assumed 20%, since most retirees have lower income).
TFSA contributions come from after-tax income, but all growth and withdrawals are completely tax-free. This is more valuable when your current tax rate is low, or when you expect high income in retirement.
Inputs: Age 35, income $80,000, $10,000/year contribution, 6% return, BC resident.
Current marginal rate: ~29.7% (federal + BC combined). RRSP path: You contribute $10,000, get a ~$2,970 refund, reinvest it — effectively contributing $12,970/year pre-tax. At 65 (30 years), the RRSP balance is taxed at 20% on withdrawal. TFSA path: $10,000/year grows tax-free for 30 years.
In this example, RRSP wins — the upfront tax savings plus 30 years of tax-deferred compounding outpace the TFSA's tax-free growth.
If your current marginal rate is at or below 20% (roughly incomes under $57,000 in 2025), the TFSA will likely give you more at retirement — because the RRSP's tax refund isn't as valuable, yet withdrawals are still taxed.